CANADA STOCKS-TSX

Pares gains in volatile post-Fed trading

June 21, 2013|Reuters

* TSX up 26.78 points, or 0.22 percent, at 11,995.35 * Seven of 10 main index sectors rise * Index on track to drop more than 1 percent on the week

By Solarina Ho TORONTO, June 21 (Reuters) - Canada's main stock index rosebut was off its highs on Friday, with energy stocks falling inline with weaker commodity prices. Investors mostly returned to equities after a two-dayselloff triggered by concern about the U.S. Federal Reserve'splan to slow its stimulus program. But trading was volatile andthe index was still on track to drop more than 1 percent for theweek. "We've been used to (the volatility). A fact of life formarkets today. We're going into a new environment and no onelikes uncertainty," said John Ing, president of MaisonPlacements Canada. "The reality has set in that tighter money, higher rates arein the offing. Unfortunately, we've not been able to addresssome of the problems which prompted the easing, therefore, thevolatility." Energy stocks were down 0.2 percent, tracking weaker oilprices. The group's decline was led by Canadian NaturalResources, which fell 1.1 percent to C$29.30. SuncorEnergy was trading at C$30.72 and Cenovus Energy Inc. was trading at C$29.62. Both were also among theindex's biggest drags. The financial group, which was the main mover in Friday'spush higher, was up 0.2 percent. Weakness among insurancecompanies offset gains by the country's big banks. Sun LifeFinancial slid 3 percent to C$29.96, while ManulifeFinancial Corp. gave back 1.55 percent to C$16.54. The Toronto Stock Exchange's S&P/TSX composite index was up 26.78 points, or 0.22 percent, at 11,995.35 inearly afternoon trading. It traded as high as 12,067.54 and atone point dipped to 11,935.72. Seven of the index's 10 maingroups were positive. "Our sense is the market is very jittery, very skittish, andas a consequence they're looking more toward the short term,"said Irwin Michael, a portfolio manager at ABC Funds. "Onbalance our sense is that our market is a little oversold. Thelatter part of yesterday was just pandemonium." Heavyweight gold mining stocks Goldcorp Inc. andBarrick Gold Corp. both added more than 1 percent eventhough bullion was headed for its sharpest weekly drop in nearlytwo years. Telecoms companies were also well-represented at the top ofthe table, with BCE Inc. up 1.3 percent at C$43.70,Rogers Communications Inc. up 2.7 percent at C$46.00,and Telus Corp. gaining 1.8 percent to C$34.06. Theoverall group was up 1.7 percent.